Phoenix Gets Its First Asia Flight—Starlux Launches Taipei Route Thanks To $165 Billion CHIPS Act Bet
Phoenix is getting its first flight to Asia. Taiwan’s Starlux will launch Phoenix – Taipei service three times weekly with an Airbus A350-900.
Phoenix (PHX) is set to gain nonstop flights to Asia❗️
Starlux Airlines intends to launch a new route from Taipei (TPE) to Phoenix (PHX) starting February 2026.
Flights are planned to operate 3x weekly using the A350-900 according to Phoenix Mayor Kate Gallego.
Thanks to… pic.twitter.com/e4pR7Tf1XS
— Ishrion Aviation (@IshrionA) May 20, 2025
Starlux is Taiwan’s third airline. EVA Air is a member of Star Alliance and China Airlines is part of SkyTeam. Starlux isn’t aligned, but it has designs on joining American Airlines-led oneworld.
However it isn’t potential connecting traffic that’s driving the carrier to add service to American’s Phoenix hub, on top of their existing Los Angeles, San Francisco, Seattle, and Ontario flying.
Taiwan Semiconductor Manufacturing Company has a major investment in Phoenix. The company has around $70 billion in annual revenue and a market cap approaching a trillion dollars from producing 90% of the world’s leading-edge chips. They manufacture the most advanced chips for NVIDIA and others.
While they announced a Phoenix project with local and state subsidies in May 2020, the passage of the CHIPS Act and the ensuing $6.6 billion in grants and $5 billion in loans led to a massive expansion of the project. Total capital expenditure could reach $165 billion, which I believe would make it the largest foreign investment in a new project in U.S. history.
There’s a lot more flying between the U.S. and Taiwan than would be expected by passenger volumes alone.
- There’s a lot of business travel related to chips, AI, and technology.
- And there’s also a robust cargo business.
- That leads to a lot of excess seats. The capacity makes sense for premium and cargo traffic, but airlines have extra seats to unload.
- There are 8 peak daily LA – Taipei flights and 7 peak daily San Francisco – Taipei flights. There are 4 airlines flying Seattle – Taipei and San Francisco Taipei. Seattle – Taipei is one of the only routes where there’s consistent Delta business class award space at not completely insane (albeit still high) prices.
Given flight distance and aircraft, this service will need to operate in the middle of the night during the summer where Phoenix temperatures would otherwise impede the operation.
Starlux isn’t generous with premium cabin award space, but this is another opportunity to use Alaska Airlines miles for transpacific travel and connections over Taipei to other destinations in Asia represent a strong opportunity using this flight.
Ultimately the linkages between the U.S. and Taiwan, while symbolized by air connections, are about chips technology and defense. The U.S. doesn’t want Taiwan’s chip manufacturing to fall under the sphere of influence of China. And Taiwan wants a U.S. shield against Beijing adventurism. The more tourists who experience Starlux, visit Taiwan, and make good use of their miles the more the security interests of both nations are fostered.
